ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has allowed power distribution companies (DISCOs) and K-Electric (KE) to collect an additional Rs1.743 per unit from electricity consumers over the next three months, from September to November 2024.
Nepra “has determined a positive adjustment of Rs43,230 million on account of variation in capacity charges, variable O&M, additional recovery on incremental sales, use of system charges, market operator fee and FCA impact on T&D losses for 4th quarter of FY2023-24”
During a public hearing on August 26, chaired by NEPRA Chairman Waseem Mukhtar, DISCOs attributed the need for adjustments primarily to lower-than-expected sales during the quarter.
NEPRA noted that some DISCOs, including PESCO failed to draw energy as per its demand and opted to carry out loadshedding in its service area. While this reduced their share of capacity charges from overall pool, it also contributed to lower sales. These companies had sought for Rs1.9/unit additional collection.
The Central Power Purchasing Agency (CPPA), representing DISCOs, sought Rs51 million for legal charges as part of the quarterly adjustment, which NEPRA rejected. The regulator stated that legal costs are already included in the Market Operation Fee (MoF), for which Rs500 million had already been approved for FY 2023-24.
The CPPA, in its plant-wise data, also added an amount of Rs72.23 million on account of Kot Addu Power Company (Kapco) charges on account of tax differential for the period from July 1 to October 24, 2022. But the authority did not consider the amount claimed for Kapco. The authority also adjusted an amount of Rs73.18 million charged by the CPPA-G to Discos on account of PPIB fee as part of PMLTC invoice for January 2024. The matter of PPIB is under consideration of the authority through separate proceedings; therefore, the matter would be decided once those proceedings were concluded.
NEPRA permitted a positive adjustment of Rs43.23 billion for variations in capacity charges, variable O&M, additional recovery on incremental sales, use of system charges, market operator fees, and FCA impact on transmission and distribution losses for the fourth quarter of FY 2023-24. This adjustment will be collected at a uniform rate of Rs1.743 per unit from all consumer categories except lifeline consumers.
Nepra also notified that a negative “adjustment of Rs0.3692/kWh shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, electric vehicle charging stations, prepaid electricity consumers of all categories who opted for pre-paid tariff and agriculture consumers of all Discos”.
